Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments: Support Departments Producing Departments Maintenance Personnel Assembly Painting Overhead $200,000 $60,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 # of employees 30 — 72 198 Direct labor hours — — 25,000 40,000 Required: 1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. 2. Using direct labor hours, compute departmental overhead rates.
Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments:
Support Departments Producing Departments
Maintenance Personnel Assembly Painting
Square footage — 2,700 5,400 5,400
# of employees 30 — 72 198
Direct labor hours — — 25,000 40,000
Required:
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method.
2. Using direct labor hours, compute departmental overhead rates.
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